How can i owe federal taxes

how can i owe federal taxes

Did the company you worked for withhold less tax from you? If not, and if your State has income tax also,you are going to owe. There's a lot of. show more Did the company you worked for withhold less tax from you? If not, and if your State has income tax also,you are going to owe. There's a lot of possibilities here as far as how much, if any was withheld. How many exemptions did you claim? If you claimed zero, and if your payroll department withheld according to IRS formulae as outlined in their publications 15 and 15-A, you may be due a refund.

The only thing you can do is check your stubs. Even if you have direct deposit, payroll is going to mail you a stub showing your gross, taxes withheld and very nearly

always they'll have a "YTD" column. What you must do is divide the Federal tax withheld by the gross salary. I say "must" because the IRS mandates that U.S.

citizens and resident aliens and dual status aliens are on a "pay as you go" system. Therefore, if payroll is not withholding enough, you

have to correct the problem OR pay estimated tax to the IRS. For many varying reasons, payroll departments have been goofing up. I think it is because the personnel are so lazy, they just input and think the computer is going to do all the thinking. It's irresponsbile, but the IRS

holds us responsible for paying our taxes. One has to watch his stubs. If payroll refuses to correct, we have to send in estimated tax to the IRS. I'll be challenged on that, but I am an inactive enrolled agent and I saw this too frequently in the past. You are married, so you are not going to be clobbered so badly on the withholding as filing "single". However, the computer is programmed to "project" for the entire year. In your case, I suspect it's not that you began work on a Friday which was the last day of the pay period. We have to jump on our payroll department when they make errors. Keep an eye on your stubs. You really do not want to claim "zero". You are giving the government an interest free loan. Best to you.

Source: sg.answers.yahoo.com

Category: Taxes

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